IFB Agro Industries Stock Research

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IFB Agro Industries Detail

IFB Agro Industries is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Distillery and Beverages sector.

As per the Company website it is manufactures and distributes Grain Alcohol, DDGS, CO2, Organic Manure, Alcoholic beverages, Aqua feed and Processed Frozen Shrimps for Domestic and Export markets.

The business operations of this Company is divided into three parts

  • Distillery
    • Produces ENA (Extra Neutral Alcohol) which is used in manufacturing of whisky and gin
  • IMIL
    • It is the largest manufacturer of India Made Indian Liquor (IMIL) in Bengal
  • Marine
    • It offers seed, feed and supplements for Aqua Culture
    • Exports Aqua food (like Shrimp) to Belgium, France, Germany, Russia, Italy, UAE, Thailand, Japan, Vietnam, USA, Canada and Australia, among others.
    • Ready to Cook and Ready to Fry seafood for Domestic consumption
  • Other Businesses
    • Value added ingredient for Poultry, Aqua, Cattle and Swine feeds
    • Approved supplier of Co2 to Pepsico and Coca Cola
    • Manufacturer of Dry Ice under brand Polarice
    • Organic manure under brand name of Nabajivan
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The Company is located in West Bengal and majority of business operations are confined to the state only.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

IFB Agro Industries Stock Performance

The stock has given 50 times return in above long term price chart if you take the absolute price of 2002 (8 INR) and current price of (400 INR). Currently the stock is trading at 400 which is strong support zone for the stock.

If you see from year 2015 to 2017 stock was trading around 400 mark. You can view as consolidation in prices and thus building strong support zone. If zoomed past 700 mark after consolidation. It has since then corrected and came back to support levels. If you are new to these concepts then read my Support and Resistance article on more details on it.

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IFB Agro Industries My Opinion

IFB Agro Industries is a Distillery and Beverages Company. The Company is operates in many other verticals but Distillery is one of the main business operations so I have clubbed it under this head. Recently the Feeds business is showing traction and Company is focusing on Sea Food.

Sea Food has domestic and international demand whereas Distillery business in only confined to Domestic consumption as of now. It does supply raw material ENL to other companies (as acting as a B2B business to business company) in the space.

The Country Liquor targets the low income group which constitutes major consumer base. But this market is dominated by unorganized smaller players. Company will have to increase marketing and try to penetrate the unorganized market in West Bengal as well as other states. There is potential in this space.

Organic manure is yet another good business of the Company. If you observe closely Company operates in Agriculture and related fields. It has to expand its foot print outside West Bengal for major growth in sales and revenue. Most of its operations are confined in West Bengal state.

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I will be keeping track on this Company. That will help get more information about it and future plans. The sectors it is present are good and have good scope of growth in future.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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